2nd July 2021
Weekly Round Up
After a volatile week, markets ended in positive territory with the FTSE 100 Index gaining 0.21% to trade around 7,134 at the time of writing. The FTSE 100 now stands close to a pre-pandemic high, amid optimism surrounding a strong economic recovery.
Gold prices suffered the biggest monthly drop in four and a half years in June, dropping -7% after the Federal Reserve surprised investors with its willingness to control inflationary pressures with an eventual rise in interest rates.
Chinese stocks suffered their worst day in three months in the wake of the ruling Communist party’s centenary celebrations, as investors offloaded shares in local makers of liquor and beer. The CSI 300 Index of Shanghai and Shenzhen listed stocks tumbled -2.8% as investors took profits amid nerves about the country’s economic outlook.
The US stock market rose to further highs this week, with the Dow Jones Industrial Average increasing by 0.61% and the S&P 500 gaining 0.75%. US investors remained optimistic due to strong corporate earnings forecasts and ahead of the monthly non-farm payrolls report in which economists expect to see employers add close to 700,000 jobs in June, up from 559,000 a month earlier.
Shares in agricultural organisation Wynnstay rose by 13.67% after the company announced a rise in profit and revenue for the first half of the financial year. Revenue rose to GBP £249.7million from GBP £229.3million the year before.
The company stated sentiment and confidence in the UK agricultural sector has greatly improved following strong farmgate prices and the passage into law of the agricultural bill, relaxing immediate concerns over Brexit.
Burberry’s shares tumbled by 9.11% after the company announced CEO Marco Gobbetti will be leaving to take up position at another luxury brand. The move not only means the fashion house is losing a successful industry veteran but has sparked concerns that other executives could follow suit.
Gobbetti has been at the helm of Burberry since 2017, and spearheaded the company’s turnaround, which has included an increase popularity with younger shoppers and expansion into higher-margin accessories.